Newzoo Launches Alternative Games Market Segmentation

AMSTERDAM, 30 May 2012 –
Today, Newzoo launches an alternative way of segmenting the
games market. The model is featured in an infographic and
incorporates fresh data on 153 million American gamers and their
$21.9 billion estimated spending on games in 2012. The starting
points of the new segmentation are the consumers and their typical
four screens, each fulfilling a separate consumer needs. Contrary
to the traditional segmentation, the model is designed to stand the
test of time and show cross- and single screen growth
opportunities. Already 22% of all American gamers, or 34 million
people, use all four screens to play games.

All types of games are moving towards the cloud, relying on
in-game sales for revenues and are increasingly accessible via
multiple screens. Current market segmentation is based on
definitions and terms that are subject to continuous change. In
addition, the overlap between the traditional segments is
constantly growing. When it comes to reporting on the past or a
small part of the games business, the segmentation can still work,
but this approach is not suitable to keep track of the total
picture or to identify future growth opportunities.

Peter Warman, Newzoo CEO, adds:
”We have been first in researching and reporting
on all game platforms and business models on an international
level. As traditional market research companies, such as NPD in the
US and GfK in Europe attempt te get a grip on the online and mobile
business models, we are taking the next step. Our clients need to
look ahead and our new approach is aimed at inspiring our clients
and sizing concrete opportunities in a way that still makes sense
in five years. Naturally we will, in parallel, keep segmenting the
market in the traditional way.”

The consumer and their four screens

The Screen Segmentation model distinguishes four types of
screens: the Computer, Entertainment, Personal and Floating Screen.
According to this new model, each of the four screens plays a
different role, yet all of them are firmly present in
consumers’ lives and therefore continuously used. Consumers
can interact or be entertained anywhere and at any time. Based on
the use of the screens, tablets are grouped with handheld consoles
and not with smartphones, as traditionally done for the
“mobile gaming” market segment. The growth in mobile
gaming is therefore fueled by the uptake of two different screens,
each having their own right of existence. 31% of Americans now have
their TV connected to the web. As apps enter the TV space, the
interactive use of this screen will continue to grow, justifying
the term Entertainment Screen.

Growth opportunities

Based on fresh 2012 research and trending data, the infographic
shows 2012 estimates for the number of players, time spent, number
of paying gamers and money spent. As no game genre or
platform has more than 50% paying gamers, conversion is key to any
game. Reports that show only revenues do not reflect the market
situation. They also limit the ability to predict future
opportunities, as growth starts with the uptake by consumers,
regardless if they spend money. After that, players begin to spend
more time, then start paying and ultimately spend more. The
infographic shows the absolute figures and relative shares of these
four key trend indicators for each individual screen.

153 million American gamers spending $21.9bn

Already 22% of American gamers uses all four screens to play
games. Amongst the 84 million paying gamers, this share rises to
31%. Europe shows slightly lower shares: 21% of gamers and 27% of
paying gamers, still a significant number of consumers. It is not
surprising that game companies are offering access to their games
via multiple screens. The PC Screen attracts the highest share of
gamers, 91%, and money spent, 51%. The difference between share of
gamers and share of money is highest with the Personal Screen: 59%
versus 8%, pointing to growth. The data also indicates that the TV
or Entertainment Screen has opportunity for growth, but only when
business models catch up with the other screens and available game
genres become more balanced. Narrowing down to company or
game-specific opportunities requires further segmentation per
screen in business model, distribution method, demographics, genre
preferences and payment methods. A possibility that is available to
Newzoo data subscribers as of today.

About Newzoo

Newzoo (
www.newzoo.com) is an international market
research firm focused purely on the games industry. The company
aims to provide the best independent market data across all game
platforms and business models. It also operates Gamesindustry.com,
the Global Games Industry Directory. Newzoo’s clients include
Kabam, PopCap, SEGA, Nintendo, Blizzard, EA, Gamehouse, Microsoft,
SpilGames and ProSieben. GlobalCollect (
www.globalcollect.com) is the launch sponsor of
Newzoo’s 2012 series of National Gamers Surveys involving
more than 200 topics across all game platforms and business models
in western markets as well as emerging markets such as Poland and
Turkey.

Games Press is the leading online resource for games journalists. Used daily by magazines, newspapers, TV, radio, online media and retailers worldwide, it offers a vast, constantly updated archive of press releases and assets, and is the simplest and most cost-effective way for PR professionals to reach the widest possible audience. Registration for the site and the Games Press email digest is available, to the trade only, at www.gamespress.com.

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